Re-Imagining Capitalism

Building a Responsible Long-Term Model

Edited by Dominic Barton, Dezso Horvath, and Matthias Kipping

Provides views on reforming capitalism from academia, business, and NGOs

Brings together a first rate group of academics and business people who have made significant contributions to debate on the subject

Offers suggestions that are being and can be implemented

Accessibly written, in a style that brings novel ideas and practices to a broad audience

Re-Imagining Capitalism

Building a Responsible Long-Term Model

Edited by Dominic Barton, Dezso Horvath, and Matthias Kipping

Description

Capitalism has been an unprecedented engine of wealth creation for many centuries, leading to sustained productivity gains and long-term growth and lifting an increasing part of humanity out of poverty and subsistence. But its effects, and hence its future, have come increasingly under question: Is capitalism still improving the wealth and well-being for the many? Or, has it become destructive for the economy, where long-term value creation is being sacrificed to the pressures of short-termism; for society, where the gap between rich and poor has increased and opportunities to lift oneself out of poverty have dwindled; and for the natural environment, which seems increasingly under threat with unforeseen consequences for prosperity and global order?

This volume reflects both the urgency of the needed action and the opportunity to achieve a wide-ranging agreement and lasting movement towards a more responsible, equitable, and sustainable model of capitalism in order to ensure its very survival. The volume is unique in that it brings together many of the leading proponents for a reformed, re-imagined capitalism from the fields of academia, business, and NGOs. Its contributors have been at the forefront of thought and action in regard to the future of capitalism. Both individually and collectively, they provide powerful suggestions of what such a long-term oriented model of capitalism should look like and how it can be achieved. Drawing on their research and/or professional experience, they write in an accessible way aiming to reach the broad audiences required to turn a re-imagined capitalism into a reality.

Re-Imagining Capitalism

Building a Responsible Long-Term Model

Edited by Dominic Barton, Dezso Horvath, and Matthias Kipping

Table of Contents

1. Re-imagining Capitalism for the Long Term: Situating the Volume, Dominic Barton, Dezso Horvath and Matthias KippingPart I. Trailblazing: The Role of Exemplary Leadership 2. Re-establishing Trust: Making Business with Purpose the Purpose of Business, Paul Polman3. Business and Society: Reshaping Global Systems, Kathleen McLaughlin and Doug McMillon4. Family Firms and "Patient Capital": Thinking in Decades, not Quarters, Galen G. Weston5. Cooperatives: Stakeholder-oriented by Design, Long-term Focused by Necessity, Monique Leroux6. Corporate Community Involvement in the 21st Century, Ratan N. Tata (with Dirk Matten)7. Broad: The Gifts of Breadth in a World Sold on Depth, Nick Lovegrove and Matthew ThomasPart II. Engaging:Broader Views for a Better Capitalism 8. Understanding and Misunderstanding the Triumph of Capitalism, John Kay9. Engagement Required: The Changing Role of the Corporation in Society, Andrew Crane and Dirk Matten10. Responsible Capitalism: Business for the 21st Century, R. Edward Freeman, Bidhan L. Parmar, and Kirsten M. Martin11. Being Good and Doing Well: Not as Easy as You Think, Bryan W. Husted12. 'Maximizing Shareholder Value' is an Unnecessary and Unworkable Corporate Objective, Lynn Stout13. Narrowcasting: How Media and Political Disruption Changed the Economic Debate, John StackhousePart III. Advancing: Suggestions for the Ways Forward 14. Imagining a Sustainable Financial System, Simon Zadek15. Integrated Reporting for a Re-Imagined Capitalism, Robert G. Eccles and Birgit Spiesshofer16. Reasonable Expectations and Fiduciary Obligations: Legal Pathways to Longer-term Thinking, Edward Waitzer and Douglas Sarro17. Corporate Social Responsibility: The Case for Active Ownership by Institutional Investors, Gordon L. Clark and Michael Viehs18. Building the Right Long-term Approach: The Power of Aligning Leadership, Strategy, and Execution, Bruce Simpson and Tiffany Vogel19. A New Way of Thinking About Resource Development: A Values-Based Approach, Richard A. Ross and D. Eleanor Westney20. Restoring the Capitalist Promise: Opportunities in the U.S. Youth Labor Market, Shawn Bohen and Gerald ChertavianConclusion 21. Capitalism Re-imagined, Dezso Horvath and Dominic Barton

Re-Imagining Capitalism

Building a Responsible Long-Term Model

Edited by Dominic Barton, Dezso Horvath, and Matthias Kipping

Author Information

Dominic Barton, Global Managing Director, McKinsey & Company, ,Dezso Horvath, Dean and Tanna H Schulich Chair in Strategic Management, Schulich School of Business, York University,Matthias Kipping, Professor of Policy and Chair in Business History, Schulich School of Business, York University

Dominic Barton is the global managing director of McKinsey. Since joining the firm in 1986, Dominic has advised clients in a range of industries, including banking, consumer goods, high tech, and industrial. Before becoming global managing director, Dominic served as McKinsey's chairman in Asia from 2004-09, based in Shanghai, and led McKinsey's office in Korea from 2000-04. Dominic leads McKinsey's work on the future of capitalism, long-term value creation, and the role of business leadership in society. He has authored more than 80 articles on capitalism, leadership, financial-market development, Asia, history, and the issues and opportunities facing global and Asian markets. He is the co-author, with Roberto Newell and Greg Wilson, of Dangerous Markets: Managing in Financial Crises (Wiley & Sons, 2002). His most recent book is China Vignettes: An Inside Look at China (Talisman, 2007).

Dezso J. Horvath is Dean and Tanna H. Schulich Chair in Strategic Management at the Schulich School of Business, York University, where he has been a member of the faculty since 1977. He holds an electrical engineering degree, a Master's degree in Business Administration, and Licentiate and PhD degrees in Management from Sweden. In addition to his role as Dean, Dr. Horvath is a director of a number of companies and organizations and serves on the advisory board of various business schools around the world. He was named 2004 Dean of the Year by the Academy of International Business (AIB), the world's leading association of scholars in the field of international business, in recognition of his "outstanding leadership in various aspects of internationalization, including programs, research and curriculum development, and outreach." In 2008 he was made a Member of the Order of Canada, the country's highest civilian honour, for his academic leadership and sustained commitment to business education.

Matthias Kipping is Professor of Policy, Chair in Business History, and Director of the Kellogg-Schulich Executive MBA program at the Schulich School of Business. He teaches courses on global management in the undergraduate, MBA and Executive MBA programmes. Matthias has degrees from the University of Munich in Germany, the Sorbonne in Paris and Harvard's John F. Kennedy School of Government. He held previous appointments at the University of Reading in the UK and Universitat Pompeu Fabra in Barcelona. His main research interest has been the international transfer of management knowledge, with a particular focus on the role of management consultants and management education - topics on which he has published widely.

Contributors:

Dominic Barton is the Global Managing Director of McKinsey & CompanyShawn Jacqueline Bohen serves on the executive leadership team at Year UpGerald Chertavian is the CEO and founder of Year UpGordon L. Clark is Professor and Director of the Smith School of Enterprise and Environment at Oxford UniversityAndrew Crane is the George R. Gardiner Professor of Business Ethics at the Schulich School of Business, York UniversityRobert G. Eccles is a Professor of Management Practice at the Harvard Business SchoolR. Edward Freeman is a prolific educator, consultant, and speakerDezsö J. Horváth is Dean and Tanna H. Schulich Chair in Strategic Management at the Schulich School of Business, York UniversityBryan Husted is a Professor of Management at the EGADE Business School of the Tecnologico de MonterreyJohn Kay is currently visiting Professor at the London School of EconomicsMatthias Kipping is Professor of Policy and Chair in Business History at the Schulich School of Business, York University Monique Leroux is the Chair of the Board, President and Chief Executive Officer of the Desjardins GroupNick Lovegrove is the US managing partner of the Brunswick GroupKirsten E. Martin is an Assistant Professor of Strategic Management & Public Policy at the George Washington University's School of BusinessDirk Matten is the Hewlett-Packard Chair in Corporate Social Responsibility and a Professor at the Schulich School of Business, York UniversityKathleen McLaughlin is President of the Walmart FoundationDoug McMillon is the President and Chief Executive officer of Wal-Mart Stores, IncBidhan Parmar is an Assistant Professor at the Darden School of BusinessPaul Polman is the Chief Executive of Unilever Richard Ross Schulich School of Business, York UniversityDouglas Sarro is an Associate at Sullivan & Cromwell LLPBruce Simpson is a Director of McKinseyBirgit Spiesshofer is Of Counsel at DentonsJohn Stackhouse is Senior Vice-President in the Office of the CEO of Royal Bank of CanadaLynn Stout is the Distinguished Professor of Corporate and Business Law at Cornell UniversityRatan Tata was the Chairman of Tata Sons from 1991 to 2012Matthew Thomas is the founder of Prospect MadisonMichael Viehs is Research Director at the Smith School of Enterprise and the Environment at the University of OxfordTiffany Vogel is an Associate Principal at McKinsey in Toronto Edward Waitzer is former Chair of Stikeman Elliott LLP D. Eleanor Westney is Professor Emerita at the Schulich School of Business and at the MIT Sloan School of ManagementGalen G. Weston is the President and Executive Chairman of Loblaw Companies LimitedSimon Zadek is the co-Director of the UN Environmental Program Inquiry into Design Options for a Sustainable Financial System